Abstract

This paper presents general aspects of funding system at higher education sector. Funding is not
simply a mechanism to allocate funds to finance HEIs but an instrument for the government or public
authorities to ensure the HEIs administration have the same goals with them, other than that the
funding adopted by the government to influence the behaviours of agents. n response to the
development of society and economy, the pattern of distribution of public funds in the education
sector particularly HE experience a change in the context of increasing competition for public funds
because of pressure from the community to enhance quality of education